The effect of hydrogen interaction with GdFe₂ Laves phase alloy has been investigated. Crystalline hydrides are formed at relatively low temperatures and pressures, and the reaction is reversible. A GdFe₂H_4.8 is formed at room temperature, which is reversible, with a H/M ratio of 1.6. However, at this temperature desorption of all the hydrogen from the hydride is difficult because of slow kinetics and, for pressures below 103 Pa, the desorption isotherm deviates from the absorption isotherm. An amorphous GdFe₂H_x phase forms at intermediate temperatures and pressures. The absorption isotherm for this hydriding reaction is quite unusual in that, as the crystal-to-amorphous transformation is accompanied by either a gain or a loss of hydrogen. Absorption isotherms taken below 475K showed that there is an abrupt decrease in the hydrogen capacity of the alloy during the crystalline-to-amorphous hydride phase transformation. Whereas the absorption isotherms taken above 475K showed that there is an abrupt increase in the hydrogen capacity during amorphization. At temperatures above 525 K, hydrogen absorption causes to the disproportionation of the GdFe₂ crystal into a two-phase mixture of GdH₂ and bcc alpha-Fe. The formation of the crystalline and amorphous GdFe₂H_x phases, phase stability regions, disproportionation of the hydride, glass transition temperature, and possible extension to other hydrides will be discussed.